23 Jul (NucNet): Constellation Energy of the US and Electricite de France (EDF) are forming a nuclear holding company to develop, own and operate new nuclear power plants in the US and Canada.
The two companies said on 20 July that the new company, known as UniStar Nuclear Energy, would be a 50-50 joint venture. EDF will invest up to 625 million US dollars (USD) (452 million euros) in UniStar Nuclear Energy, while Constellation Energy will contribute the subsidiary companies and interests it has created and owns as part of its pre-existing UniStar Nuclear line of business.
Constellation Energy will also have the right to develop possible nuclear projects at its Calvert Cliffs nuclear power plant in the state of Maryland, and the Nine Mile Point and R. E. Ginna nuclear plants in the state of New York.
The next-generation US Evolutionary Power Reactor (USEPR), based on Areva’s European Pressurised Water Reactor design will be the joint venture's prime reactor technology.
EDF will make an initial cash investment of USD 350 million in UniStar Nuclear Energy. The companies said subsequent EDF investment under the agreement will be based on “pre-established milestones”, including USD 175 million related to the filing of construction and operating licence applications at existing Constellation Energy nuclear sites.
EDF may buy up to 9.9 percent of Constellation Energy's outstanding common shares in the open market during the next five years, with a limit of 5 percent ownership during the first 12 months of the agreement.
The boards of directors of the companies have approved the terms of the joint venture. The transaction is also subject to review by certain U.S. regulatory agencies.
The agreement to form the venture follows a memorandum of understanding announced on 1 June, 2006, under which both companies agreed to work together on the development of advanced EPR-type nuclear power plants in the US.
>>Related reports in the NucNet database (available to subscribers)
Constellation And EDF Sign Agreement On EPR Development (World Nuclear Review No. 22, 2 June 2006)
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